sumassign4 - Intro Macro ASSIGNMENT 4 N Sheflin NOTES We...

Intro Macro N. Sheflin ASSIGNMENT 4 NOTES:We introduce Money, Banking and the Federal Reserve. Quiz 2beginning of class Thursday – covers assignments 2 and 3 Multiple Choice HW 4 questions in Sakai You should be able to answer the following: Lots here, interesting, simple, important. You are responsible for only the SIMPLEST of t-accounts What’s money and why is it good (for the economy?) How is money created and controlled? How do banks ‘work’ and what do banks have to do with money? What’s leverage? Net worth? What’s the Fed? What determines interest rates? What’s the role of the financial system in the broader economy? How are banks and the financial system regulated? Investment Game–round 1 – buy something, read investopedia, get rich. READING Mankiw Brief chapter 11 (look at sakai for tale of contents of non-brief) Also, the Wikipedia entry is good on the history of money: http://en.wikipedia.org/wiki/History_of_moneyShort, simple article on capital and leverage in banking at: www.mercatus.org/PDFDownload.aspx?contentID=26042Fed 101 http://www.federalreserveeducation.org/fed101/index.htm?CFID=3567752&CFTOKEN=74815474 Additional background at: Brief History and Background at http://minneapolisfed.org/econed/curric/history.cfmSome Money Facts from PBS at http://www.pbs.org/moneymoves/money_facts/U.S. Money History at http://www.frbsf.org/publications/federalreserve/annual/1995/history.htmlThe face of money – what’s on a bill at http://minneapolisfed.org/econed/curric/pictures.cfmMore, if you have the stamina The Federal Reserve Board of Governors Web Site http://www.federalreserve.gov/Look at the American Currency Exhibit (Take the Tour) http://www.sf.frb.org/currency/index.htmlSome interesting pictures of early money at http://www.thebritishmuseum.ac.uk/worldofmoney/world_what.htmlFedpoints have great short introductions to various monetary policy topics. Look here: http://www.newyorkfed.org/aboutthefed/fedpoints.htmland look at Who We Are and What We DoBoard of Governors of the Federal Reserve SystemFederal Open Market CommitteeCurrency Processing and DestructionHow Currency Gets into CirculationFederal Funds Rate

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